LABAT AFRICA LIMITED - Termination of Ag with Leaf Botanicals, Completion of Suspensive Cond re 80% Acq of SAHPRA Cultivation Op in SA

Termination of Ag with Leaf Botanicals, Completion of Suspensive Cond re 80% Acq of SAHPRA Cultivation Op in SA

LABAT AFRICA LIMITED
Incorporated in the Republic of South Africa
(Registration number 1986/001616/06)
JSE code: LAB ISIN: ZAE000018354
(“Labat” or “the Company” or “the Group”)
FSE Code: LEI 9845000R73DF5EE41J88

TERMINATION OF SALE OF SHARES AGREEMENT WITH LEAF BOTANICALS PROPRIETARY LIMITED
(“Leaf Botanicals”) AND COMPLETION OF SUSPENSIVE CONDITIONS RELATING TO THE 80%
ACQUISITION OF A SAHPRA APPROVED CULTIVATION OPERATION IN SOUTH AFRICA

Leaf Botanicals
Shareholders are referred to the announcement released on SENS dated 19 May 2021 wherein
Labat entered into an Agreement for the acquisition of 75% of Leaf Botanicals.

As detailed in the year end results announcement published on 31 December 2021 the Leaf
Botanicals acquisition was terminated due to Leaf Botanicals no longer wishing to pursue the
transaction following the discovery that the product was not up to standard and the inability to
find a suitable way forward. Following further discussions, the termination has been accepted
by Labat.

In view of the above, the issue of 11 250 000 shares to the shareholder of Leaf Botanicals will be
cancelled and the Company is in the process of applying to the JSE for the delisting of the
shares.

Sweetwaters Acquisition
Shareholders are referred to the announcement published on SENS on 2 March 2022 and are
advised that suspensive and closing conditions relating to the acquisition of 80% of shares and
claims in Lima Romeo Air Proprietary Limited, known as Sweetwaters, which is a fully operational
SAHPRA approved medicinal cannabis cultivation facility in Kenton-on-Sea in the Eastern Cape
of South Africa (“the Acquisition”) have been met including the payment of the full purchase
price. The acquisition is now unconditionally implemented.

As announced earlier the acquisition of the Eastern Cape based facility provides Labat with
additional medical and pharmaceutical infrastructure in support of its Healthcare Strategy and
enables Labat to accelerate the delivery on its off-take agreement with a Swiss pharmaceutical
group.

Johannesburg
17 March 2022

Sponsor
AcaciaCap Advisors Proprietary Limited

Date: 17-03-2022 03:45:00
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